SGSCMF-003-2001 HP DeskJet Printer Supply Chain Global Supply Chain Management Forum GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY GSS3B MAY 2001 Hewlett-Packard Company DeskJet Printer Supply Chain (B)1 Brent Cartier‚ Manager of Special Projects in the Materials Department of the HewlettPackard (HP) Vancouver Division‚ was enjoying a hot cup of coffee after lunch on the long flight to Germany. The last few days had been exhausting. Meetings‚ conferences calls and non-stop phone calls
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Introduction In this case William Hewlett and David Packard with headquarters in Palo Alto‚ California founded Hewlett-Packard Company in 1939. HP diversifies its production into electronic test‚ measurement equipment and computers and peripherals products: in 1990‚ HP had over 50 operations worldwide with revenues of $13.2 billion and net income of $739 million. In 1988‚ the Deskjet printer was introduced and had become one of HP’s most successful products‚ with sales of 600‚000 units/$400 million
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Issue Analysis Alternative Recommendation & Implementation Monitor & Control Conclusion Appendix Executive Summary As Manager of Special Projects‚ Material Department at HP Vancouver division‚ it is my decision to move towards to postponement of Product Differentiation. The decision regarding the postponement strategy is of very strategic importance to future growth of HP. I recommend full review of inventory management system for desk jet printers & design
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HP Deskjet Printer Supply Chain Case Analysis - This case study deals with Hewlett-Packard (HP)‚ a famous manufacturer of computers and peripherals. In the early 1990s‚ HP faced a so-called “Inventory/Service-Crisis” concerning one of their high volume products‚ the DeskJet printer. Despite growing inventory levels at the distribution centers in Europe and Asia-Pacific‚ customer service levels were unsatisfactory. Affected by growing competition this problem had to be handled quickly. Brent Cartier
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Supply Chain Management Group work 2: HP DESKJET PRINTER SC Group 11: Claudia Jongerius S120008 Sjoerd Groot S120011 Chris Louman S120035 Tom van der Laan S120042 PTMSc16: June 6th 2013 1. Consider the solution alternative - placing scientifically based inventory system‚ (say Periodic review system) - to solve inventory-service crisis. Estimate cycle inventory‚ safety inventory and pipeline inventory‚ for all desk jet printer models‚ to achieve 95% cycle service level (under
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MARKETING CHANNELS EXECTIVE SUMMARY This case study deals with Hewlett-Packard (HP)‚ a famous manufacturer of computers and peripherals. In the early 1990s‚ HP faced a socalled “Inventory/Service-Crisis” concerning one of their high volume products‚ the DeskJet printer. Despite growing inventory levels at the distribution centers in Europe and Asia-Pacific‚ customer service levels were unsatisfactory. Affected by growing competition this problem had to be handled quickly. EXECTIVE SUMMARY
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managing the DeskJet printers in Europe assuming that the Vancouver plant continues to produce the six models sold in Europe. Using the data in Exhibit 17.13‚ apply your model and calculate the expected yearly investment in DeskJet printer inventory in the Europe DC. Answer: 1. In order to calculate the yearly investment in DeskJet printers‚ we calculate the yearly investment of the printers separately and then add them together to get the total yearly cost. There are 6 versions of the printers‚ which
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Case: Hewlett-Packard-Supplying the Deskjet Printer in Europe The DeskJet printer was introduced in 1988 and has become one of Hewlett-Packard’s (HP’s) most successful products. Sales have grown steadily‚ reaching a level of over 600‚000 units in 1990. Unfortunately‚ inventory growth has tracked sales growth closely. HP’s distribution centers are filled with pallets of the DeskJet printer. Worse yet‚ the organization in Europe claims that inventory levels there need to be raised even further
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1. INVENTORY/SERVICE CRISIS FOR HP DESKJECT PRINTERS There are a number of causes of the inventory/service crisis described in HP: • The first cause was the demand variability of printers. For example‚ the demand for model A in Europe had the monthly standard deviation of 32.4 while the monthly mean was 42.3. Combined with increasing pressure from resellers that forced HP to offer the resellers flexible distribution‚ fluctuations in demand resulted in the high levels of safety stocks and high
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Desk Jet Printer Supply Chain From the case‚ there’re several significant issues emerged in HP desk jet printer supply chains: - Inefficient demand forecasting system - Long lead time - Disagreement on right level of inventory among HP divisions Demand Forecasting System HP desk jet printer is considered in the mature stage of product life-cycle. So‚ time-series analysis along with causal methods would be efficient tools for forecasting demand. As time-series methods use a variety of past
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